AUD Technical analysis:AUD bearish bias strongest ahead of RBA
Updated
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RBA rates cut on May 7 for many reasons. So there is a good chance of trading. In May of 1016 RBA was cut, Then almost weak to 150/20 pips against almost all major pairs.
1.Inflation:
RBA's annual inflation tag is below 2-3%, RBA does not hold the normal rate. The reason for this is to keep the * auds stable. * Keep the labor market right. * Ensure balanced income. Australia's current infusion is 1.4% where their togates are 2.5% because of which it is forced to cut rates.
A break of 0.6980 triggers fresh selling towards early 2016 levels. However, the year 2016 bottom near 0.6820, followed by the January month’s flash crash low of 0.6730, can appear on the bears’ radar afterward
2. Markets are focused on Trump's renewed China trade threat and will likely keep AUD on the defensive.
3. AUD/USD risk reversals hit 3.5-month lows on Monday.
4. Investors likely buying puts in anticipation of RBA rate cut.
Technical View:
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There are major support at the current rate of 0.6980. If the breakout is 0.6980, then the Next Target 0.6900 and Final Target 0.6830.
On the other hand, there are major registrations at the current rate of 0.7110 area. 0.7110 when the area breakout, next target More than 7160, I do not see any fan coming up next Friday.
*** So Sell Position Is best about 0.7000 Area Target 0.6830 Area.
Daily SMA100 0.7114
Daily SMA200 0.7170
Previous Weekly High 0.707
Previous Weekly Low 0.6984
Previous Monthly High 0.7206
Previous Monthly Low 0.6988
Daily Fibonacci 38.2% 0.7010
Daily Fibonacci 61.8% 0.700
Trade active
So Sell Position Is active now 0.7000 Area Target 0.6830 Area.Note
If RBA does not cut the rate then close the Sell Order .
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